The pound moved up to 90p against sterling yesterday as the British currency weakened, writes Jane Suiter. Bank of England governor Mr Eddie George said the currency's recent decline was positive for British industry.

Sterling began to weaken after the British Chambers of Commerce published a weak quarterly survey on the service sector and urged the Bank of England to cut interest rates again next month.

Mr Jim Power, chief economist at Bank of Ireland, said the pound would remain between 89p and 91p for now, but within six months it should hit 95p as sterling continues to decline.